Final answer:
The statement about adjustable life insurance policies that is not true is that policy loans are not allowed. In fact, these policies do permit loans against the cash value, which must be repaid with interest.
Step-by-step explanation:
The statement regarding an adjustable life insurance policy that is NOT true is: Policy loans are not permitted. An adjustable life insurance policy combines the features of term and permanent insurance into a single plan, allowing policyholders the flexibility to change their coverage as their insurance needs evolve. This type of policy does permit policyholders to take out loans against the cash value of their policy. These loans must be repaid with interest, but they provide a source of funds for policyholders, if needed.